Russia’s Uralchem Group, a leading producer of potash and ammonium nitrate, signed a Memorandum of Understanding (MoU) today with three Indian public sector undertakings Rashtriya Chemicals and Fertilizers Ltd (RCF), India Potash Ltd, and National Fertilizers Ltd (NFL) to expand cooperation in the fertiliser sector and establish a joint venture for a new urea manufacturing plant in Russia.
The agreement, inked on the sidelines of Russian President Vladimir Putin’s visit to India, outlines a collaborative framework where India Potash and RCF will each hold a 22.5% stake in the venture, NFL a 5% stake, and Uralchem the remaining majority share while leading operations. The gas-based urea facility, modelled after India’s successful Oman joint venture, aims to bolster India’s long-term supply security amid volatile global markets and geopolitical shifts.
This move comes as India, the world’s largest urea importer, has ramped up purchases from Russia rising over threefold to $1.7 billion in 2024 to support its vast agricultural sector that feeds 1.4 billion people. By setting up the plant, the partners seek to stabilise costs, ensure steady supplies, and reduce reliance on spot imports, which hit 5.6 million metric tons last fiscal year.
Officials from the Department of Fertilizers hailed the MoU as a “strategic win” for self-reliance, potentially creating jobs and technology transfers while navigating Western sanctions on Russian trade. Uralchem’s expertise in nitrogen-based products will complement India’s push for domestic production under the Atmanirbhar Bharat initiative.
As the ink dries on this pact, it signals stronger Indo-Russian economic bonds, promising cheaper fertilisers for Indian farmers and a more resilient global supply chain in an uncertain world.
